When a firm is earning zero economic profits
A) accounting profit is zero.
B) total revenue is greater than total cost.
C) P = ATC.
D) P is greater than ATC.
C
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Which of the following is an example of an intermediate good?
a. Sugar bought by a bakery b. Sugar bought by a family c. Furniture bought by a family d. Burgers bought at a restaurant e. Medicines bought at a pharmacy
If quantity demanded is greater than quantity supplied, then
a. an excess supply exists b. the market is in equilibrium c. the price will rise d. the supply curve must be vertical e. there will be no tendency for the situation to change
In the long run, a perfectly competitive firm maximizes profit so P = MC = AC
a. True b. False Indicate whether the statement is true or false
The expression "There's no such thing as a free lunch" means
a. in an exchange, if one person gains, someone else must lose. b. each person must pay for exactly what he or she receives. c. the use of resources to meet one need means that those resources can no longer be used to meet another need. d. in an exchange, if one person gains, someone else must lose and equal amount.